Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies

Commitments and Contingencies

17.Commitments and Contingencies

Commitments

Lease Agreements

In March 2007, the Company entered into a lease agreement for an unlimited period starting in December 2007 with CONTRA Liegenschaftsverwaltung GMBH for the use of business and research premises at Leberstrasse 20, 1110 Vienna. Within the first 10 years the contract can only be terminated under certain conditions. The monthly rental fee for the premises and laboratory furniture was $84,000 and $85,000, as of March 31, 2017 and December 31, 2016, respectively,  and includes all operating costs. Additional monthly costs for facility management and security services amounted to $9,000 and $9,000 as of March 31, 2017 and December 31, 2016, respectively.

In July 2015, the Company entered into a lease agreement with CardConnect, LLC, for the use of office premises at 1000 Continental Drive, Suite 600, King of Prussia, PA 19406, USA with the lease term continuing until December 2023. The monthly base rental fee was $40,000 and $40,000 as of March 31, 2017 and December 31, 2016, respectively.

Rent expense was $304,000 and $272,000 for the three months ended March 31, 2017 and 2016, respectively.

The obligations under the lease agreements are payable as follows:

(in thousands)	As of December 31, 2016		As of March 31, 2017
No later than 1 year	$	1,484	$	1,252
Later than 1 year and no later than 5 years	2,536		2,572
Later than 5 years	507		515
Total	$	4,527	$	4,339

Other contractual commitments

In addition to the agreements described above, the Company has entered into a number of other agreements also entailing financial commitments for the future and relating mainly to services provided by third parties in connection with the conduct of clinical trials and other research and development activities. Some of these commitments are also subject to early termination clauses exercisable at the option of the Company. The remaining payments to be made under these agreements, if all milestones and other conditions are met, are estimated to be as follows:

(in thousands)	As of December 31, 2016		As of March 31, 2017
No later than 1 year	$	51,685	$	45,575
Later than 1 year and no later than 5 years	6,241		5,290
Later than 5 years	—		—
Total	$	57,926	$	50,865

Contingencies

The Company has no contingent liabilities in respect of legal claims arising in the ordinary course of business.